Saudi Fund Wants to Take Tesla Private?

Saudi Arabia’s sovereign wealth fund has been pushing to take electric carmaker Tesla private in talks with Elon Musk dating back nearly two years and also backed the deal last week, according to Musk.

Investors were already in shock with Musk's last week announcement that he was looking to take Tesla private at $420 a share, valuing company at $72 billion, providing no details on funding except that it was "secured."

1

Share this post

Link to post

Share on other sites

So Musk just confirmed the funding is there. Now he just needs to make sure as many as possibly who want in on this deal also get a chance to do so. In that way the Saudis will not get anywhere close to a controlling interest that they should not have because their motives cannot be trusted.

Share this post

Link to post

Share on other sites

Smart move by the Saudis. This move only shows their vision in green energy. They are aware that they can't rely only on oil. Tesla is their way to stay in this musical chair game and take a seat when the music stops.

Share this post

Link to post

Share on other sites

They want to diversify, and go green. Any help from them will secure Tesla's future, financing in new factories and growth would be easier. As long as they don't have a majority owner share - this is just a good thing. Musk stays in control, and have access to whatever funds needed to go ahead at maximum velocity.

Share this post

Link to post

Share on other sites

I don’t mind the Saudi family investing in a small portion of Tesla. Saudi Arabia is an irresponsible player regarding climate change. They are rapidly increasing carbon emissions, even though they have huge amounts of free cash and sunlight they could invest toward their own green transformation, if they wished to. It is absolutely naive to trust them with anything more than a small portion of Tesla shares.

Share this post

Link to post

Share on other sites

The Saudis are behind the biggest solar energy project in the world ($ 200 billion) and seem to be very committed to renewable energy. On the other side, The US has been running on Saudi oil for decades and according to the President this country is an important strategic ally of the US. So why should we be outraged by their investment in Tesla?

Share this post

Link to post

Share on other sites

For the Saudi's, what type of investment is this..do they really think they can turn this into a cash machine that will generate enough to make the $72b cap look palatable....and how much control would they have..how much would musk give up...what if Musk leaves...

I think Tesla is more dysfunctional than the U.S. Presidency. Only difference is that no one wants Musk to leave

1

Share this post

Link to post

Share on other sites

Saudi Arabia’s sovereign wealth fund has been pushing to take electric carmaker Tesla private in talks with Elon Musk dating back nearly two years and also backed the deal last week, according to Musk.

Investors were already in shock with Musk's last week announcement that he was looking to take Tesla private at $420 a share, valuing company at $72 billion, providing no details on funding except that it was "secured."

A high $420/share buyout price doesn't help the Saudis. They want to buy the company as cheap as possible if they buy it at all. Why should they come in and buy it now? Let the stock fall, they can get it cheap.

Share this post

Link to post

Share on other sites

A high $420/share buyout price doesn't help the Saudis. They want to buy the company as cheap as possible if they buy it at all. Why should they come in and buy it now? Let the stock fall, they can get it cheap.

Yup. Tesla stock is just a few late-night wackado tweets away from crashing.

Share this post

Link to post

Share on other sites

The Saudis are behind the biggest solar energy project in the world ($ 200 billion) and seem to be very committed to renewable energy. On the other side, The US has been running on Saudi oil for decades and according to the President this country is an important strategic ally of the US. So why should we be outraged by their investment in Tesla?

Has that actually started? I don't think they got much beyond the Solar roof at Al Midra - Dhahran in 2012.

But was the fundingreallysecured? Apparently not, because in the very next paragraph Musk writes that "following the August 7th announcement, I have continued to communicate with the Managing Director of the Saudi fund.He has expressed support for proceeding subject to financial and other due diligence and their internal review process for obtaining approvals.He has also asked foradditional details on how the company would be taken private,including any required percentages and any regulatory requirements."

In other words "funding was secured"...subject to due diligence, further review and actual deal details,which would only be formalized after Musk first assured the world that "funding was secured", meanwhile the only real motive behind the tweet was to "burn the shorts."

It gets more complicated:

July 31st take-private offer:"I understood from [Saudi SWF director] that no other decision makers were needed."

August 7th version: "He has expressed support for proceeding subject to... their internal review process for obtaining approvals."

So which was it? Or, summarized:

I met the Saudis

They have lots of cash

...

"funding secured"

3

Share this post

Link to post

Share on other sites

Please somebody get Musk a support brain. If he sells out to the Saudis it would be the end of what he stands for, not that anyone would care of course, since adoration and rational thinking don't go together. This is pathetic but no more pathetic than his attempt to wriggle out of the "funding secured" clustermug. Can everyone just stop covering Tesla? It would be a welcome change. End of rant.

2

1

Share this post

Link to post

Share on other sites

So Musk just confirmed the funding is there. Now he just needs to make sure as many as possibly who want in on this deal also get a chance to do so. In that way the Saudis will not get anywhere close to a controlling interest that they should not have because their motives cannot be trusted.

Like it or not, Saudi control the most precious non-renewable resource on earth - petroleum. Saudis can't be trusted but there is nothing one can do about it.

4 hours ago, Marina Schwarz said:

Please somebody get Musk a support brain. If he sells out to the Saudis it would be the end of what he stands for, not that anyone would care of course, since adoration and rational thinking don't go together. This is pathetic but no more pathetic than his attempt to wriggle out of the "funding secured" clustermug. Can everyone just stop covering Tesla? It would be a welcome change. End of rant.

Musk was shouting conspiracy theories of big oil causing problems to him and he suddenly pops out with a banner that Saudis are funding Tesla. What an irony!

3

Share this post

Link to post

Share on other sites

Please somebody get Musk a support brain. If he sells out to the Saudis it would be the end of what he stands for, not that anyone would care of course, since adoration and rational thinking don't go together. This is pathetic but no more pathetic than his attempt to wriggle out of the "funding secured" clustermug. Can everyone just stop covering Tesla? It would be a welcome change. End of rant.

I for one like your rants. 😁

As for covering Tesla, it is just far too crazy to ignore. Good stuff, good stuff! We cannot stop!

1

Share this post

Link to post

Share on other sites

I don't think it's a good investment. It maybe a historic investment that looses money. Trash to electricity and diesel or ethanol or whatever would fit in nicely since they have high electric costs. Tires to diesel exc... Hydrogen in the local market in Saudi for semis. That's what I would lean towards instead.

Share this post

Link to post

Share on other sites

SAUDIS SHOULD STEP IN TO BUY STAKE OF VENEZUELAS OIL RESERVES ONLY WAY TO MARKET STABILITY

Venezuela has ultra heavy oil which needs other light petroleum to blend. Also, the problem in Venezuela is because of nationalisation of oil industry and oil fields. If Venezuela was open to foreign purchase of its oil fields, then the problem would not ave been there in the first place